Phase 1A of Kalihi housing rebuild costs $333 million

Highridge Costa and the Hawaii Public Housing Authority broke ground on Thursday for the first phase of the Mayor Wright Homes redevelopment. The ceremony marked the start of construction on a 15-acre site in the Kalihi-Palama neighborhood near downtown Honolulu.

The housing authority estimates Phase 1A will cost $333 million. State officials previously estimated the total cost for the entire project at $1.3 billion in 2017. The full redevelopment is expected to take 15 years to complete, with the first building scheduled to open in 2029.

Planners will replace the current complex, which is bounded by King Street, Liliha Street, and Vineyard Boulevard. The new development will feature ten towers containing more than 2,400 rental homes. These units will range from studios to five-bedroom apartments. The project also includes condominiums for sale, commercial space, and four acres of public parks and recreational areas.

The new design aims to serve a wider range of income levels than the previous site. More than half of the units are reserved for tenants earning less than 80% of the area median income. Later phases will extend eligibility to households earning up to 100% of that figure, which is approximately $150,000 annually for a family of four. Current residents displaced by construction are being relocated and will have priority to return to the new buildings.

Hakim Ouansafi, executive director of the housing authority, stated that the project aims to break barriers rather than just break ground. He emphasized that public housing should not be considered second class. Governor Josh Green called the project central to the state's housing strategy, noting that stable housing supports education and health care.

Moe Mohanna, president of Highridge Costa Development Company, described the initiative as a legacy for the state. Honolulu Mayor Rick Blangiardi linked the construction to the arrival of the Skyline rail line. The site is designed to be within walking distance of the planned Iwilei rail station.